First time buyer equity scheme extended after budget increased to £20m

A FIRST time buyer scheme which was originally set up to help groups such as veterans and members of the Armed Forces, has been expanded to accept applications from everyone looking to buy their first property.

A SCOTTISH Government scheme which helps people get on the housing ladder is being opened up to all first-time buyers after funding for it was doubled.

The budget for the open market shared equity scheme has been increased from around £10 million to around £20 million.

Previously only open to some groups such as veterans and members of the Armed Forces and those renting a council or housing association home, it is being expanded to accept applications from everyone looking to buy their first property.

The scheme helps people buy any home for sale on the open market, of which they can take an equity stake of between 60% and 90%. The Government then funds the remaining amount, by taking an interest-free equity stake.

It is part of the Government's Low-Cost Initiative for First Time Buyers.

Infrastructure and Capital Investment Secretary Alex Neil announced the changes.

"Many first-time buyers may not be able to afford a large deposit to help them buy their first home. That is why we are doing all we can to help people on low to moderate incomes across Scotland get on the property ladder where it is affordable for them," he said.

"Doubling the funding for our shared equity scheme means that all first-time buyers can now apply. It is good news for households and families wishing to purchase their first home and also helps second-steppers who wish to move home.

"We are also helping first-time buyers by operating two other shared equity schemes: the new supply shared equity scheme and the new supply shared equity with developers scheme.

"All this action helps the economy by kick-starting more house building and sustaining substantial numbers of construction jobs."

Former soldier Mark Hill was able to buy his home through the scheme.

Mr Hill, who served in the Royal Electrical and Mechanical Engineers, said: "The scheme has allowed me to buy a home and settle my family in Dunblane, Scotland, and get on the housing market without scrimping and scraping to make ends meet."

Craig Sanderson, chief executive of Link Housing Association, said extending the open market shared equity scheme is "excellent news and will help many families to obtain a home of their choice".

It will also have a "knock-on effect of releasing much-needed housing available at rents affordable to people in low-paid employment or on limited fixed incomes".